TongQingLou Catering (605108) Minsheng Securities·2024-04-28 06:00Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Views - The company reported a significant increase in revenue and profit for 2023, with revenue reaching 2.401 billion yuan, a year-on-year increase of 43.76%, and a net profit of 304 million yuan, up 224.90% year-on-year [1]. - The company is focusing on expanding its prepared food business, which is expected to break through regional barriers and become a national brand [1]. - The hotel business is also expanding, with the addition of new hotels and a strong performance in banquet services, which complements the restaurant business [1]. - The company has a robust dividend policy, with over 40% of net profit allocated for dividends, resulting in a dividend yield of 1.50% [1]. Financial Performance Summary - For 2023, the company achieved a revenue of 2.401 billion yuan, with a growth rate of 43.76% [4]. - The net profit for 2023 was 304 million yuan, reflecting a growth rate of 224.91% [4]. - The gross margin for 2023 was 26.62%, an increase of 8.29 percentage points year-on-year, while the net margin was 12.66%, up 7.06 percentage points year-on-year [1]. - The company expects net profits for 2024, 2025, and 2026 to be 412 million yuan, 538 million yuan, and 686 million yuan, respectively, with corresponding PE ratios of 17X, 13X, and 10X [1][4]. Business Segment Insights - The restaurant business is continuously optimizing its store model, which is expected to enhance customer acquisition and profitability [1]. - The food business has rapidly expanded its online and offline channels, with a strong competitive edge in prepared and frozen foods [1]. - The banquet service model is unique and favored by consumers, with potential for rapid market capture as brand reputation grows [1]. - The hotel business is leveraging synergies with the restaurant and banquet services, indicating a promising growth trajectory [1].